HONG Kong and Shanghai Hotels yesterday posted an 11.95 per cent rise in net profit to $178 million for the six months to June 30, with both the property and overseas hotel interests improving.
Earnings per share were 17 cents, up 13.33 per cent on last year's 15 cents, and directors are proposing a dividend of six cents, in line with last year.
The results were broadly in line with market expectations, with The Estimate Directory consensus figure for the year weighing in at $425 million, an annual increase of 14 per cent.
Yesterday the group's board meeting started with directors expressing their sadness at the death of former chairman Lord Kadoorie on Wednesday.
Work on the extension to the Peninsula took its toll on retail rental income at the hotel, but this was offset by strongly performing assets elsewhere.
Looking ahead, a spokesman for the group said: ''The extension to the Peninsula Hong Kong will continue to affect not only the guest rooms, but also the restaurants and shops, although this effect will be mitigated at least in part by the strong performance of the group's other assets.
''Initial interest in leasing the 9,000 square metres of office space in the new tower has been encouraging and by year-end it is expected to be substantially let.'' The $1.1 billion 131 room and suite tower is due to be opened next spring.